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Momentive Specialty Chemicals’ Oilfield Technology Group Adds New Production Line to Cleburne, Texas Resin Coating Plant

November 18, 2010 at 11:57 AM EST

HOUSTON, Texas - (November 18, 2010) - The Oilfield Technology Group (OTG) of Momentive Specialty Chemicals Inc. (formerly Hexion), today announced the startup of a new manufacturing production line at its Cleburne, Texas facility and plans to build an additional line at its plant in Brady, Texas to provide additional resin coated proppants to fracturing service companies and operators in the oil & gas industry.

The new facilities are part of the overall plan of Momentive’s OTG business to expand capacity 40% in 2011. The Brady facility will be fully operational in the second quarter of 2011.

“Momentive, the world’s largest supplier of specialty proppants, continues to add new production capabilities to meet the needs of the industry for high quality resin coated proppants. These additional production lines are another part of achieving our ongoing expansion plans,” Borges said.

Resin coated proppants are used in the hydraulic fracturing process to help optimize production from oil and gas wells by maximizing fracture flow capacity from the reservoir to the wellbore. Technological innovations and Momentive’s introduction of enhanced materials have expanded the use of resin coated proppants into unconventional reservoirs that feature complex and challenging geological formations.

“Our expansion program is in direct response to the increased demand from our customers. These new production lines highlight the dedication we have to providing Momentive’s customers with the materials they need to optimize their hydraulic fracturing results,” Borges said.

About Momentive’s Oilfield Technology GroupMomentive Specialty Chemicals’ Oilfield Technology Group is a global leader in resin coated proppants for use in hydraulic fracturing. Momentive pioneered the technology more than 20 years ago to help customers optimize fracture flow capacity and improve post treatment well production. Momentive is committed to enhancing its industry leadership and meeting its customers' specific application needs with a total solutions approach of quality products and services. Additional information is available at www.momentive.com/oilfield.

About the new MomentiveMomentive Performance Materials Holdings LLC is the ultimate parent company of MomentivePerformance Materials Inc. and Momentive Specialty Chemicals Inc. (collectively, the “newMomentive”). The new Momentive is a global leader in specialty chemicals and materials, with a broad range of advanced specialty products that help industrial and consumer companies support and improve everyday life. The company uses its technology portfolio to deliver tailored solutions to meet the diverse needs of its customers around the world. The new Momentive was formed in October 2010 through the combination of entities that indirectly owned Momentive Performance Materials Inc. and Hexion Specialty Chemicals Inc. The capital structures and legal entity structures of both Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (formerly known as Hexion Specialty Chemicals, Inc.), and their respective subsidiaries and direct parent companies, remain separate. Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. file separate financial and other reports with the Securities and Exchange Commission. The new Momentive is controlled by investment funds affiliated with Apollo Global Management, LLC. Additional information about the new Momentive and its products is available at www.momentive.com and at www.hexion.com.